This article examines the nature and incidence of business diversifica
tion by farm households in three types of rural economy in England. Af
ter defining the concept of business diversification, the preliminary
findings of an extensive postal questionnaire survey of more than 1250
farm households are presented. Emphasis is placed on both the differe
nces in business diversification between the three areas and the types
of farm and farm household involved in this form of agricultural adju
stment. Differences in farm size, farm type, occupancy and household c
omposition provide indirect explanations of the development of busines
s diversification in the three areas, but further intensive methods an
d qualitative analyses are required to identify the major processes cr
eating spatial variations in business diversification by farm househol
ds.